shit niggas know about defi now, now my fucking interest rate will tank cause of influx. delete this thread asshole.
Wyatt Bell
is legacy compound "safe" as v2?
Grayson Sullivan
kek, last year I was screaming DeFi from the roof tops nobody was listening.
I don't believe you can borrow or lend on V1 anymore, I figure any funds on there are safe though.
> Compound v1 > The original protocol will continue to be accessible through its Ethereum smart contracts, the legacy web interface, and manual operation. Over the next 4–8 weeks, borrow transactions will become disabled, while supply, withdraw & repay transactions will work in perpetuity.
Thoughts on Hummingbot? Apparently it's a quant trading bot thats free, open source and defi. Seems promising, most other quant trading bots seem to charge pretty high fees
There's no point in getting involved with Defi dominated by centralized Maker. The coders set the interest rates arbitrarily to screw over the new borrowers.
Jaxson Rivera
Maker is just one system that lives on top of a blockchain and facilitates a single decentralised financial product. We're not even 1 year out in terms of DeFi even being relevant in the crypto world. If there are shortcomings; rest assured, competitors with brighter ideas will come around to fill the gaps and also their own pockets. No doubt..
At some point there was only 1 cryptocurrency, now we have close to 3000. Don't underestimate the value DeFi will bring if we remain on this deterministic path of financial decentralisation. Credit, lending, borrowing, swaps and other synthetic contracts are a tremendous huge chunk out of the financial markets too.
Ryder Rodriguez
Has someone made sense of how Synthetix.io works?
I'm struggling to see how its not another bitconnect
1) I buy SNX tokens on an exchange 2) these SNX tokens allow me to create sUSD at $1 each. What for? How can you just create money out of a random token?
How is this not bitconnect 2.0?
Kayden Parker
and does RSR count as defi?
Anthony Hill
I mean...it is a huge pyramid, yes.
> What for?
To trade Synths, Synthetic contracts. Right now they do have the biggest Crypto's to trade at no slippage and no spread at any volume. There's also quite some Forex and commodity pairs (Gold). Soon there will be normal stocks to trade swaps on ($AAPL, $TSLA.) at up to 10x leverage. This can only be done with sUSD. Which should drive demand and increased minting since the exchange fees are distributed to people who are staking/minting.
> How can you just create money out of a random token?
Because someone else is willing to buy it at 1$? When you mint sUSD you do mint the one and only currency you can trade synthetic contracts with on Synthetic though.
> How is this not bitconnect 2.0?
It is. But, just quite cleverly designed not to be as obvious as BCC.
i get its for their margin trading/gambling, but why do we need 2 native tokens to do it?
Caleb Gomez
call it "token utility" or whatever. What else would SNX be good for if it was not for this? Also, the staking factor does complete the pyramid. And there are quite a bit more than only 2 native tokens.
> i get its for their margin trading/gambling
It's not exactly gambling, it kind of mimics normal trading and the traditional stock market along with forex. That is quite a legit use case.
so in a 100x bull market there could be a situation where you've got 100k USD in SNX but cant cash it out because you can't pay your debt after everything else has gone up
So the smart move is to buy this token and leave it in your wallet so you can get out if/when this ponzi collapses?
so what are people actually doing with these defi platforms? the way i see it, (for non-gamblers) there’s two main uses for it 1. hodling eth or your alt of choice and drawing small returns from it. 2. anytime you would want to sit in fiat, you sit in DAI instead to draw higher interest. anyone have any other boomer-tier use cases?
Benjamin Cooper
> so in a 100x bull market there could be a situation where you've got 100k USD in SNX but cant cash it out because you can't pay your debt after everything else has gone up
Not really. You lock SNX at 0.40$ and loan x$ amount of sUSD at a collateralization of 750%. If it falls below 0.40$, your collateralization will drop below 750%. But as the price of SNX increases your collateralization will also increase beyond 750%, and you can now send some of the SNX which were previously locked; or use them to mint more sUSD. In case the price increases by 100x, you can likely mint 99.9% of your SNX without having to pay off your loan.
So a pyramid, within a pyramid, within a pyramid. I'm game though, pic related...
> So the smart move is to buy this token and leave it in your wallet so you can get out if/when this ponzi collapses?
And hope the sUSD does not collapse. And the dev's stop pulling stunts like these:
>so what are people actually doing with these defi platforms?
in essence, everything a bank or the stock market does, all the way to mortgages and credit default swaps can be represented in smart contracts. Right now we are coming in from a segment of the market where trading is dominant, so for a while you'll only see degenerate gambling. But just think about the use cases of the traditional stock market and banks.....then you have your DeFi boomer tier use cases.
Luis Flores
The interest rates change as Dai rises and falls in value. In the future it might be automatic.
